Yahoo Finance Federal Reserve pushes interest rates above 5% for first time since 2007

[Sippican]

Hey, Sippican, I too love the higher interest rates. For years there was almost free money. If you were a senior and had money in the bank you were poorer and poorer every year. It's high time us seniors got a break.

You are right, I like a decent interest rate 5.60%, guaranteed for 7 years, payable monthly is a a great deal. I stay away from CD because I like the monthly interest payout.
When I was in the equities market, I was looking for stocks, ETF's, mutual funds that paid dividends around the 4-5% range. The problem with that is when stock go down, (and they will because they are overpriced), the shares can lose value....why take the risk. Stocks will go down when the 3rd & 4th qtr earnings come in. Layoffs are the start, for every person getting laid off there are 100 reading that and are cutting back to basics or cutting where they can. With the political climate these days shaky, anything can happen.

 

[palides2021]

you are more negative at 5% interest rates and 5- 9% inflation vs 1-2% inflation and zero to 1% interest

Depending on how you spend your money! A 5% interest rate is MUCH better than the measly 1% we were getting before.

 

[mathjak107]

so you rather have all these price increases and mortgage rates and rents sky rocketing .

not sure where you live but costs have escalated far more then you are getting .

plus most Americans don’t have enough of a balance even to get 5% on compared to the increase in living costs .

I see no way most of us are better off now .

 

[oldmontana]

Depending on how you spend your money! A 5% interest rate is MUCH better than the measly 1% we were getting before.

Sure is.

 

[mathjak107]

Sure is.

5% beats 1% but that doesn’t mean in real dollars you are a head of when we got zero and inflation was only 1%
most have us had our yearly budget go farther when rates and inflation were lower .

not to mention lower mortgages , refinancing , zero percent auto loans and lower credit card rates which helped almost all americans

 

[oldmontana]

5% beats 1% but that doesn’t mean in real dollars you are a head of when we got zero and inflation was only 1%

Say what?

 

[mathjak107]

Say what?

if you can’t understand we were better off with lower inflation and lower rates then now then go take a basic economics course

 

[oldmontana]

5% beats 1% but that doesn’t mean in real dollars you are a head of when we got zero and inflation was only 1%

Real dollars?

 

[mathjak107]

5% beats 1% but that doesn’t mean in real dollars you are a head of when we got zero and inflation was only 1%

Real dollars?

really …so 7% mortgages and 9% auto loans and the rises in rents , food ,energy , home care costs and everything else are better now ?

maybe in your BIZZARO world but i think most here and in fact most americans will tell you you are just wrong.

most americans have little to get interest on in cash instruments and those who do don’t count on bank accounts for growth .

so you are totally off base if you thing 5% on savings accounts and inflation and rates today are not leaving americans poorer then they were

 

[oldmontana]

really …so 7% mortgages and 9% auto loans and the rises in rents , food ,energy , home care costs and everything else are better now ?

maybe in your BIZZARO world but i think most here and in fact most americans will tell you you are just wrong.

most americans have little to get interest on in cash instruments and those who do don’t count on bank accounts for growth .

so you are totally off base if you thing 5% on savings accounts and inflation and rates today are not leaving americans poorer then they were

maybe in your BIZZARO world

I live in the real world and not in your world of what if etc.

 

[Packerjohn]

BIG JOKE HERE: Went to local grocery store a few days ago. I noticed that Canadian Maple Syrup that used to be $12.99 is now $17.99. The media is telling us that we have a grocery inflation of 10%. Looking at that maple syrup isn't how I figure it?

I don't think we will ever really get ahead. Our standard of living is going to go down and down. No body in my country wants to work for the minimum wage so the government is bringing in plane loads of immigrants to fill in the jobs. I don't know how you see the future in terms of living standards but I don't see roses and sunshine.

 

[mathjak107]

on the other hand holy cow , now that aviana flu stopped effecting egg laying chickens eggs are dirt cheap .

lumber has plunged now that supply open up again .

many of us don’t buy maple syrup ..they buy the. log cabin stuff .

so no one is lying .

it’s just the items you buy or won’t sub may be more then the items others buy.

 

[Sippican]

so you rather have all these price increases and mortgage rates and rents sky rocketing .

not sure where you live but costs have escalated far more then you are getting .

plus most Americans don’t have enough of a balance even to get 5% on compared to the increase in living costs .

I see no way most of us are better off now .

Im not saying everyone is better off. We know that is not true for the last 2 years.
Only certain societies are only happy when everyone 'is better off'. I would like to see that, but we can only give away so much money for free.
In America, we guarantee opportunity, not guaranteed outcome.

 

[Sippican]

BIG JOKE HERE: Went to local grocery store a few days ago. I noticed that Canadian Maple Syrup that used to be $12.99 is now $17.99. The media is telling us that we have a grocery inflation of 10%. Looking at that maple syrup isn't how I figure it?

I don't think we will ever really get ahead. Our standard of living is going to go down and down. No body in my country wants to work for the minimum wage so the government is bringing in plane loads of immigrants to fill in the jobs. I don't know how you see the future in terms of living standards but I don't see roses and sunshine.

I don't think the plane load of immigrants are being brought in for jobs. They are being brought in for votes.

 

[Sippican]

really …so 7% mortgages and 9% auto loans and the rises in rents , food ,energy , home care costs and everything else are better now ?

maybe in your BIZZARO world but i think most here and in fact most americans will tell you you are just wrong.

most americans have little to get interest on in cash instruments and those who do don’t count on bank accounts for growth .

so you are totally off base if you thing 5% on savings accounts and inflation and rates today are not leaving Americans poorer then they were

You are taking current rates as a sign of the greater population. Your general numbers really don't add up. Over 65% of US is single family homes, a higher percent of those 65% are locked in with low interest rates. Auto loans are dropping off.
We can change course in 2024, but many won't.
Its difficult for some folks to catch up later in life.

 

[mathjak107]

You are taking current rates as a sign of the greater population. Your general numbers really don't add up. Over 65% of US is single family homes, a higher percent of those 65% are locked in with low interest rates. Auto loans are dropping off.
We can change course in 2024, but many won't.
Its difficult for some folks to catch up later in life.

wrong , most americans don’t have a savings nor enough in cash instruments to matter .

food and energy and rents have wiped out any extra money in interest gotten.

half of america has credit card debt which is now at even higher rates .

most americans with a substantial savings only has a small portion in cash instruments .

so no way is it even close to what is now spent

 

[Sippican]

if you can’t understand we were better off with lower inflation and lower rates then now then go take a basic economics course

I get it, you're from NY, but you shouldn't talk down to people. It says more about you than the point you are trying to make.

 

[mathjak107]

I get it, you're from NY, but you shouldn't talk down to people. It says more about you than the point you are trying to make.

you are just wrong and facts say so.. it has nothing to do with where i am from

the little bit extra in interest most americans are seeing is peanuts compared to how much their living costs escalated .

to think other wise is just ignorance of what’s going on.

you want to believe your own bull sh*t go a head . but the rest of us understand math enough to know the inflation we have seen in our daily living exceeds the extra interest americans get by a mile

 

[mathjak107]

• 42% of Americans have less than $1,000 in savings as of 2022.
• The average American savings account balance is $4,500.
• Between 1959-2022, the average U.S. savings rate has been 8.96%.
• The average household savings rate in the U.S. was only 5.1% in the second half of 2022.

compare that to living costs going up.

like i said you can look at facts or believe your own bull

 

[mathjak107]

58% of Americans have less than $5,000 in savings.

More specifically, 42% have less than $1,000 in savings,. only 20% of americans have more than 50k in savings and much of that is in other investments other then cash

49% of Americans would not be able to cover a $400 emergency expense today.

so math and facts says most americans are worse off now then they were with lower living costs and lower rates.

the average american is seeing at best maybe 200-250 bucks in interest a year while living expenses are sky rocketing in most places . our food bill alone went up more then that a month .

Rate hikes could make it more difficult for older Americans to retire and for current retirees to stay retired.

• Dips in 401(k)s and IRAs. Interest rate hikes usually result in tumbling stocks (the S&P 500 is down about 20% from its 2022 peak), which can play havoc with retirement accounts.
• Increased home costs. Homeowning retirees with adjustable-rate mortgages will have higher costs to meet.
• Downsizing difficulties. Retirees who want to sell their homes may have a more difficult time doing so due to higher rates for new mortgages. Likewise, it could be more expensive to try to purchase a smaller home or enter a costly rental market.

Most retirees are on a fixed income, which means higher costs of goods and services are making it more difficult for them to keep up. That alone could force retirees back into the workforce, but if unemployment increases, reentering the labor force could be difficult.

to think other wise is just bad math ….

will you have a handful with substantial savings who try to hide all their money under a rock and in a savings account , sure but that is such a tiny part of the population as to not even be a blip

 

[oldmontana]

I get it, you're from NY, but you shouldn't talk down to people. It says more about you than the point you are trying to make.

Some posters think they are above others and try to put down what they post.

 

[mathjak107]

Some posters think they are above others and try to put down what they post.

no , what i do do. is try to correct the myth and bull that gets spewed here based on facts figures and actual data .

something that seems quite foreign to some here as they shoot from the hip with their bull and what they think as opposed to what facts tells us then they argue it to boot instead of learning from it.

i challenge you to find any support for your claim that americans are ahead because rates are higher on their tiny bank accounts. vs what inflation has done driving up their expenses

 

[oldmontana]

no , what i do do. is try to correct the myth and bull that gets spewed here based on facts figures and actual data .

something that seems quite foreign to some here as they shoot from the hip with their bull and what they think as opposed to what facts tells us then they argue it to boot instead of learning from it.

i challenge you to find any support for your claim that americans are ahead because rates are higher on their tiny bank accounts. vs what inflation has done driving up their expenses

I never posted about what bank accounts pay...that is typical of you posting misinformation. Time to put you on ignore?


Please read the subject of this thread.

This is what I posted..

Needed? The hope is it will slow inflation.

What say you?

I see you can get over 5% on short term CD's.

 

[mathjak107]

no , you are saying how wonderful it is we can get 5% on cds and i am saying we were better off before with lower rates and much lower inflation ….

we were further ahead when rates were much lower for all the reasons i cited

how much have your stocks fallen since rates rose ?

i bet many here are down many times what they are getting in interest because rates are higher and inflation is higher ,not even counting their rise in living expenses

 

[Sippican]

you are just wrong and facts say so.. it has nothing to do with where i am from

the little bit extra in interest most americans are seeing is peanuts compared to how much their living costs escalated .

to think other wise is just ignorance of what’s going on.

you want to believe your own bull sh*t go a head . but the rest of us understand math enough to know the inflation we have seen in our daily living exceeds the extra interest americans get by a mile

So I am wrong that you treat people poorly and that it reflects on you more than what you are trying to say?
No, I think I'm right.....others agree.